Innospec Inc. (IOSP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+0.8%

$100.36

vs $99.55 price

Levered DCF

$97.17

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.51

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.32×	76.97×	22.01×	19.15×	23.9×	77.55×	22.59×	17.75×
P/B	1.44×	2.27×	2.67×	2.46×	2.16×	2.36×	2.76×	1.83×
P/S	1.07×	1.49×	1.57×	1.3×	1.5×	1.87×	1.67×	1.02×
EV / EBITDA	9.16×	11.13×	13.59×	10.84×	12.26×	24.73×	12.57×	8.48×
Gross margin	27.7%	29.4%	30.3%	29.9%	29.3%	28.7%	30.8%	29.5%
Operating margin	8.8%	9.6%	8.3%	9.5%	8.9%	2.8%	9.9%	9.0%
Net margin	6.6%	1.9%	7.1%	6.8%	6.3%	2.4%	7.4%	5.8%
Current ratio	2.79×	2.58×	2.38×	2.15×	2.16×	2.24×	2.08×	2.24×
Debt / equity	0.04×	0.04×	0.04×	0.04×	0.03×	0.04×	0.1×	0.26×
Interest coverage	0×	0×	0×	170.27×	88.07×	18.72×	31.23×	19.35×
Dividend yield	2.2%	1.4%	1.1%	1.2%	1.3%	1.1%	1.0%	1.4%
Payout ratio	36.4%	109.0%	25.2%	23.8%	30.9%	89.2%	22.3%	25.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.8%	2.9%	12.1%	12.8%	9.0%	3.0%	12.2%	10.3%
Return on invested capital	8.9%	11.2%	9.6%	11.1%	7.3%	2.1%	9.5%	7.2%
Return on assets	6.4%	2.1%	8.1%	8.3%	5.9%	2.1%	7.6%	5.8%
Free cash flow yield	4.6%	5.2%	4.7%	1.5%	2.4%	5.2%	5.2%	5.0%
Earnings yield	6.1%	1.3%	4.5%	5.2%	4.2%	1.3%	4.4%	5.6%
Enterprise value	$1.7B	$2.5B	$2.9B	$2.4B	$2.1B	$2.2B	$2.5B	$1.6B
Net debt / EBITDA	-1.32×	-1.09×	-0.74×	-0.45×	-0.61×	-0.74×	0.08×	0.47×
Cash conversion cycle (days)	114	106	104	117	115	120	113	112